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Which of the following would not be an adjustment to net income using the indirect method?...

Which of the following would not be an adjustment to net income using the indirect method?

Depreciation Expense

An increase in Prepaid Insurance

Amortization Expense

An increase in Land

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Expert Solution

Answer:

An increase in Land

Explanation to the answer:

An increase in Land is not be an adjustment to net income using the indirect method .

Depreciation Expense and Amortization Expense will be added in net income and an increase in Prepaid Insurance is deducted from met income to reconcile but an increase in Land is not adjusted to reconcile the net income.

ekkarill92 answered 2 years ago
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